The U.S. housing market may be starting to slow down, but it is still hot. Double-digit appreciation is commonplace. Many sellers are still giddily sifting through multiple offers, and frantic buyers continue to pay more than asking prices — sometimes by $100,000 or more.
Yes, the real estate party remains in full swing, far longer than anyone expected. The National Association of Realtors says prices of existing homes soared 14.8 percent from May 2021 to May 2022 — and topped $400,000 for the first time ever. Prices are up a whopping 45 percent since the coronavirus pandemic began in March 2020, according to NAR data.
But how much longer will the party last? Consumers may be starting to worry, based on online search data: More people are searching “housing crash” and similar terms now than at anytime since 2007, according to Google Trends data. And this week, Fitch Ratings warned of “some regional home price corrections” in overheated areas. But the rating agency didn’t predict widespread price drops.
